Japan's SoftBank Mobile announced on its website that it will be offering a free 8GB Apple iPhone to customers willing to sign a two-year contract tied to one of three promotional plans including basic, premium, or student.  For those customers who would prefer the 16GB iPhone, a total price of ¥11,520 ($119.11 US) would be paid in installments of ¥480 ($4.96) per month across the two-year committment.

SoftBank is sweetening the deal by lowering the costs of their data plans, cutting the average plan from ¥5985 per month to a maximum of ¥4410, which is equivalent to a decrease from $61.88 to $45.59 per month.

Why the good deals?  Possibly to clear inventory before the release of the anticipated iPhone 4G. If this is the case, they would not be the only company concerned with an overflow of stock, as Best Buy has also announced discounts on iPhone purchases this week.  The "iPhone for Everybody" promotion also ends the final day in May, just days before Apple's Worldwide Developer Conference which is seen as a launch pad for new versions of the device.

Analysts are predicting that this quarter will see the fewest iPhone 3G sales since its introduction last summer.  This might have retailers worried about meeting sales quotas tied to the contracts that they signed with Apple. While those quotas were more easily met just a few months ago, the global economic downturn and the expectation for a new model have made consumers more hesitant.

Via AppleInsider